THE

ENTREPRENEURS
LESSON 03
THC10 – Entrepreneurship in Tourism and Hospitality
LEARNING OBJECTIVES
At the end of the lesson, you should
able to:
1. Describe the different traits of entrepreneur;
2. Identify the characteristics of entrepreneurs;
3. Describe the different types of entrepreneur;
4. Explain the contribution of entrepreneurs;
5. Discuss insights about the famous Filipino
entrepreneurs; and
6. Develop the entrepreneurial mind-sets
Who are the ENTREPRENEURS?
Ø An ENTREPRENEUR has traditionally
been defined as “a person who organizes and
manages any enterprise, especially a
business, usually with considerable initiative
and risk.” Rather than working as an
employee, an entrepreneur runs a business
and assumes all the risk and reward of a
given business venture, idea, or good/service
offered for sale.

Ø The entrepreneur is commonly viewed as an

innovator—a designer of new ideas and
business processes.
David McClelland (1961)
described entrepreneur as
primarily motivated by an
overwhelming need for
achievement and strong urge to
build.
Collins Moore (1970) studied
150 entrepreneurs and
concluded that they are tough,
pragmatic peopl e dr i v en by
needs of independence and
achievement. They seldom are
C o o pto
willing e rsubmit
, W o o ,to&authority.
Dunkelberg
(1989) argue that entrepreneurs
exhibit extreme optimism in their
decision making process. In a study
of 2994 entrepreneurs they report
that 81% indicate their personal
odds of success as greater 70% and
Entrepreneurs are passionate, buoyant and highly self-motivated.
They have high energy levels and are always willing to take
initiatives. They always keep thinking about their business and
how to increase the market share, how to improve their existing
processes.
 RISK TOLERANCE

Establishment of any entrepreneurial venture is risky and the

entrepreneur has to assume risk. As risk and rewards are
inseparable, in order to grow, the entrepreneur should have
large appetite for assuming risk.
VISION

One of the major responsibilities

of an entrepreneur, as founder
and head of the company, is
deciding where the business
should go. That requires a
strong vision on the part of an
entrepreneur.
 MENTAL ABILITY & CREATIVITY

The entrepreneur should anticipate changes and must be able to study

the various situations under which decisions have to be made.
Successful entrepreneurs have the creative ability to recognize and
pursue opportunities. They are always on a look out for new ways of
doing things, launching new products, providing new services etc.
 CLEAR OBJECTIVES
An entrepreneur has clarity
about the objectives to be
achieved in the business, the
nature of goods to be produced
and subsidiary activities to be
undertaken. This clarity in
objectives helps them to
translate their business idea into
reality.
GOOD COMMUNICATION SKILLS

This basically pertains to

communicate effectively. An
entrepreneur who can effectively
communi cat e w i t h c ust om er s ,
employees, suppliers and creditors
will be more likely to succeed than
the entrepreneur who does not.
 HUMAN SKILLS
The most important personality factors
contributing to the success of any
entrepreneur include emotional stability, good
inter- personal relations, consideration and
tactfulness. An entrepreneur has to maintain
good relations with his customers so as to
encourage them to continue to patronize his
business. He must also maintain good
relations with his employees so as to
motivate them to perform their jobs with a
high level of efficiency
 02

CATEGORIES
of
ENTREPRENEURS
1 Lifestyle Entrepreneurs
A lifestyle entrepreneur develops a
business in order to alter his or her own lifestyle, not
for the sole purpose of making money. In a sense, the
entrepreneur’s own life—as opposed to a business
per se—is the venture. Such individuals are focused
on leading a fulfilling life and cultivating a passion for
what they are doing.
2 Social Entrepreneurs
Social entrepreneurs are individuals
who act as agents of change for society. Social
entrepreneurs build companies that solve
problems, hire people in need, or both.
Celebrity chef Jamie Oliver is a good example
of a social entrepreneur.
3 Serial Entrepreneurs
A serial entrepreneur is one who continually
generates new ideas and starts new businesses, one after the
other. In contrast to an entrepreneur who takes an idea, turns
it into a business, and remains involved in the day-to-day
business operations over the long term, a serial entrepreneur
is more interested in the initial creative stages of inventing and
launching an idea.
 • Prevalent in developed countries, an innovating entrepreneur is the

1) Innovating one who introduces new goods and services, inducts new methods
of production, experiments with new processes, discovers new
market and restructures the enterprise. It is important to note that

Entrepreneurs
such entrepreneurs can work only when certain level of
development is already achieved, and people look forward to
change and improvement.

• Mostly found in developing/underdeveloped countries, this class of

2) Imitative entrepreneurs is characterized by their readiness to adopt

successful innovations already inaugurated. They enjoy the existing
innovations originated by innovating entrepreneurs, may be in

Entrepreneurs
developed economies. Imitative entrepreneurs do not innovate the
changes themselves, they only imitate techniques and technology
innovated by others.
 • Fabian entrepreneurs are ones who lack the will to adopt to new

3) Fabian methods of productions. They exhibit great vigilance and

apprehensions in experimenting any change in their enterprise.
They imitate only when it becomes perfectly clear that failure to do

Entrepreneurs
so would result in a loss of the relative position of their enterprise.
They are sluggish and diffident in adopting even the successful
innovations.

• Drone entrepreneurs are referred to the ones who refuse to adopt

4) Drone opportunities to make changes in the existing methods of

production, despite the fact that they are earning extremely reduced
returns compared to other producers, who have adopted new and

Entrepreneurs
technologically advanced methods. Sometimes such entrepreneurs
may even suffer losses but they are not ready to make changes in
their existing production methods.
 02

CONTRIBUTION
of
ENTREPRENEURS
1. It develops new market.

2. Discover new sources of

materials.

3. Mobilize Capital Sources

4. Introduce new technologies, new
industries, and new products.

5. Create Employment

6. Economic Development
Socorro Ramos
Socorro Ramos entered the publishing and retail industry by working as a
salesgirl at a bookstore. At the age of 19, she opened National Book Store in
Escolta with her husband with a capital of P200, selling books and school
supplies to students. At that time, Manila was under the control of the
Japanese, who imposed censorship on books and periodicals. To augment
their earnings, she and her husband resorted to selling other items like
candles and soaps.

Tony Tan Caktiong

Tony Tan Caktiong used to operate an ice cream parlor, before converting it into a
fast food restaurant called Jollibee. With a starting capital of P350,000, the young
Caktiong opened two branches in Cubao and Quiapo, together with friends who
supported his idea. Caktiong decided to serve hamburgers, fried chicken, and
spaghetti to customers when they started looking beyond the usual ice cream.
Eventually, the business grew, and he had to hire more employees. By knowing
the Filipino market, Jollibee managed to excel as a fast food powerhouse.
Edgar Sia – Mang Inasal
Hailing from Iloilo City, Edgar Sia dropped out of college to pursue his own
laundry and photo-developing business at the age of 19. In 2003, 26-year old
Sia decided to open the barbecue fast food restaurant Mang Inasal—Ilonggo
for “Mr. Barbecue.” The first branch was built at a mall parking lot in his
home city. The restaurant took off. When Tony Caktiong heard about Sia’s
burgeoning business, he decided to buy Mang Inasal for a total of P5 billion.
Sia eventually put the sales of Mang Inasal to other investments like banking
and healthcare. At 42, he’s considered the country’s youngest billionaire.

Cresida Tueres – Greenwich

In 1971, Cresida Tueres started Greenwich as a small over-the-counter
pizza store in Greenhills. Tueres had a knack for cooking. Her friends loved the
food she served so much that they decided to buy their own Greenwich
franchise. Impressed with Tueres’s business acumen and the growth of
Greenwich, Jollibee Foods Corporation obtained a deal in 1994 to acquire 80% of
Greenwich’s shareholding. Since then, the pizza parlor branched out to include
other dishes in its menu. In 1997, Greenwich had a record sale of P1 billion.
Milagros, Clarita, and Doris Leelin – Goldilocks
With only two cake displays and ten employees, Milagros, Clarita,
and Doris Leelin started Goldilocks at a 70-sq-m building space in Makati.
Sisters Milagros and Clarita loved baking and decided to pursue their passion
into business. With the help of their sister-in-law Doris, the Leelins opened
their first branch. Budget of Php 66,000 pesos only.

Joe Magsaysay – Potato Corner

The young Magsaysay left school to bust tables, wash plates,
and work on the cash register at a fast food chain. In a few years, he
became a manager, handling five stores. With his background and
skills in store management, Magsaysay’s friends asked him to handle
Potato Corner, of which he was a co-founder. They pooled their money
together and started the food cart business in 1992, offering franchises
left and right. Today, Potato Corner has more than 550 stalls in the
Philippines and around the world.
Asiang Reyes – The Aristocrat
In the 1930s, Asiang Reyes started The Aristocrat as a mobile canteen
in Luneta, serving sandwiches filled with adobo and other Filipino viands.
Hotdog trucks were in vogue at that time. Reyes created her own version of
merienda for park-goers. Reyes was supposed to name the canteen “Andy”
after her eldest son, but changed it to Aristocrat instead. The canteen
prospered, and Reyes and her husband decided to turn it into a full-time
restaurant.
Araceli and Jun Manas – Hen Lin
Using the recipes they learned from a Chinese chef and a capital of P30,000,
Araceli and Jun Manas started Hen Lin in 1983. Jun worked for an insurance
firm while his wife Araceli worked in a bank. The couple had to learn the
intricacies of the business themselves. At night, they practiced making
siomai or dumplings. The Manas couple opened the first Hen Lin store in SM
Makati, which was well received for its delicious dim sum offerings. 30 years
on, Hen Lin is popular in many malls, offering various products such as hopia,
noodles, congee, rice toppings, and breakfast food.
 02

DETERMINANTS
of
ENTREPRENEURIAL
SUCCESS
Being a successful entrepreneur means more than just starting a new
business every other day. It means the right attitude towards the trade and
the determination, along with the barriers to be faced to achieve success.

T o a n entrepreneur, f a i l u r e i s a p o s i t i v e
experience which is considered as a challenge or
opportunity for growth in the form of a prerequisite to
success, a profound teacher, a future value-adder, a provider
of new direction, an enhanced motivator, a path to
achievement and even as a relieving liberator.
Failure and success of an enterprise is dependent on two
factors −
• Internal factors
• External factors
Internal Factors for Success
Factors that affect the organization
internally and contribute to the success of
the firm are known as internal factors of
success. These factors include efficient
management, good quality product, quality
goods & services, good reputation, low cost
production, effective marketing, proper
financing, dedicated manpower, proper
technology, and proper time management.
External Factors for Success

Factors that affect the organization

externally and contribute to the success of
the firm are known as external factors of
success. These factors include availability of
appropriate raw material, quality manpower,
high demand in the market, government
policy, low competition, and new market.
Internal Factors for Failure
Factors that affect the organization
internally and contribute to the failure of
the firm are known as internal factors of
failure. These factors include ineffective
management, old technology, poor
financing, ineffective marketing strategies,
low quality of raw materials, low human
relations, and poor leadership.
External Factors for Failure
Factors that affect the organization
externally and are responsible for failure of
the firm are known as external factors of
failure. These factors include shortage of
raw material, shortage of power, shortage
of ma n powe r, poor fin a n c e , c h a n g e in
technology, high competition, negative
government policies, and increase in supply
and availability of better substitute.
THANK
YOU!